A company must charge less for their shoes in Athens than they do in Rome, because on average customers in Athens are not able to spend as much as in Rome. This is an example of which of the following factors influencing pricing decisions?

Responses

Product factors
Product factors

Environmental factors
Environmental factors

Market factors
Market factors

Firm-level factors

1 answer

This is an example of market factors influencing pricing decisions. Market factors include aspects such as customer purchasing power and preferences in different locations, which can affect how much a company can charge for its products. In this case, the difference in average customer spending ability between Athens and Rome is driving the pricing strategy.